Probably the TWA system fits in a little bit better with the American system than it would with many other airlines. There could be some other bids that develop, but right now that's only a 50-50 chance at most. |
Remember you can be the lowest cost airline in world and if you don't have cooperation of your work force you're going to fail, ... They're being asked to sacrifice a lot, another 35 percent. But if they don't agree their jobs will go away. |
Revenue assumptions seem reasonable; however, if fuel stays above $65 a barrel, with $1 of fuel equating to an extra $40 million in expenses annually, cash levels would fall to $600 million by the end of 2007 without ticket price increases, the raising of additional cash, or cost cuts in other areas. |
Right now, I still believe in the story of Alaska Airlines, |
Something drastic is going to have to happen. Basically, you have to have airline consolidation. |
That will put more pressure on American and Continental to do the same. |
That's a lot of slots for BA to give up, |
That's a lot of slots for BA to give up. |
That's hurting United even more, which it can't afford, |
The [big] carriers are unfairly being hit with some of the increased security costs, but even absent that, the losses would be pretty close to where they are now with or without 9/11. This was something going to happen to [them] no matter what happened. |
The administration doesn't want a strike, especially in a soft economy, |
The advantage to American is they could buy assets very cheaply, since TWA has very low equity value, and also it would prevent another airline from moving into St. Louis and competing with American if TWA were to fail, |
The advantage to American is they could buy assets very cheaply, since TWA has very low equity value, and also it would prevent another airline from moving into St. Louis and competing with American if TWA were to fail. |
The airlines had been too conservative in increasing fares. It's long overdue. |
The bankruptcy court doesn't think TWA is viable as a stand-alone carrier and neither do I, ... It would need a massive infusion of capital, it'd need a completely new game plan, and it'd need massive concessions from labor, which it's not going to get. |